Despite the considerable growth of interest in medical tourism in the last decade, there is no standard procedure to measure the pivotal factors in medical tourism destinations. Medical tourism is a rising global phenomenon that is strongly dependent on innovation and knowledge management. Being both innovative and systematic in medical tourism requires thought enrichment in knowledge management in hospitals. By applying a quantitative method, “knowledge management-oriented innovation” items have been used in this study to analyze new products or services related to active hospitals in medical tourism in Iran. This study presents the positive effects of the most essential knowledge management areas such as time, cost, and quality management orientation, on operational performance through the mediating role of innovation speed. In the current study, hospitals of Iran that are active in the medical tourism area have been considered as the final destination. Additionaly, because this study coincides with the coronavirus COVID-19 pandemic as the global health crisis which has a considerable effect on medical tourism, the managerial implications have been developed to help managers and decision-makers in order to apply the obtained findings during the pandemic and post-pandemic period.